General-government spending is on a buoyant upwards trend – mainly thanks to measures taken by the Federation. Investment spending within the federal budget is up, and Länder and local authorities can boost their investments thanks to financial relief from the Federation.
VAT in Germany will be reduced for a temporary period starting on 1 July 2020. The German Bundestag and Bundesrat have passed the Coronavirus Tax Assistance Act, which implements key parts of Germany’s unprecedented stimulus package. On top of the reduced VAT rate, measures include a bonus for families with children as well as extensive tax relief for single parents, businesses and other …